Tag Archives: Growth Enterprise Market Segment

Atlas Development & Support Services lists on the Nairobi Securities Exchange

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Nairobi-headquartered support services and logistics company Atlas Development & Support Services (ADSS or Atlas cross listed on the Growth Enterprise Market Segment (‘GEMS’) of the Nairobi Securities Exchange, having successfully raised KES 450 million (US$5 million) through a private placement to Kenyan investors.

According to Atlas CEO Carl Esprey the listing hopes to tap from the growing opportunity in the region as well as leverage on local content.

“The strong interest from Kenyan investors is recognition of the opportunity to create a world class development and support services provider in Eastern Africa. We have demonstrated robust financial performance, world class service delivery and regional scale to position Atlas as the best way to gain exposure to this opportunity,” says Esprey.

The funds raised in the placing will be used to provide additional capital for organic growth and acquisitions around Atlas’s support services offering in Kenya and the region.

The placing, which was offered solely in Kenya, was completed through the issue of 39,139,827 new ordinary shares at a price of KES 11.50 per share (being 8.13p, in line with the closing price of the Company’s shares on AIM on 20 November).

Andrew Wachira, Acting CEO, NSE says, “The cross listing of Atlas is another major step towards our goal of ensuring that companies that have substantial operations in Africa are accessible to both Kenyan and international investors. This cross listing is historic for our exchange and it is directly in line with Vision 2030, which envisions that the growth in Kenya’s natural resources industries will also help grow our financial institutions.”

“The cross listing further justifies Kenya’s stance that its financial market remains very attractive to both local and international investors. ” adds Mr Wachira.

Atlas recently commenced construction on a KES 180 million (US$2 million) planned investment to build a logistics hub in Lokichar, Turkana County. This will help companies and government operate more effectively across the Turkana basin.

Atlas has invested KES 1.4 billion (US$ 15 million) in Kenya over the last 12 months and plans to invest over KES 4.5 billion (US$ 50 million) in Kenya over the next five years.

Carl Esprey says, “We’re Kenyan-headquartered and our core operation was founded here in Nairobi. Today we’re proud to also call ourselves a Kenyan-listed company. The cross listing will provide further local support for Atlas and represents a natural alignment with our Kenyan stakeholders and customers.”

The shares have been offered today on the GEMS market – at a price of KES 11.50 (8.13p) per share – a slight discount on London.

Edward Burbidge, CEO says, “This cross listing is a very exciting transaction for both the Nairobi and London financial markets. Here in Kenya it will provide investors with a unique opportunity to gain exposure to this sector in Eastern Africa, through a company that has 100 per cent of its shareholder register tradable in both Nairobi and London.”

Burbidge Capital acted as placing agent and Nominated Advisor to the placing and cross listing.

Atlas provides international standard turn-key development and support service solutions to multiple sectors, including oil & gas, mining, geothermal, construction and infrastructure. It employs over 700 Kenyans in delivering engineering, infrastructural development projects and workforce accommodation solutions in Kenya, Tanzania, Djibouti, Mozambique and Ethiopia.

Atlas Development and Support Solutions expects Kenyan listing by mid December

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Oil and gas solutions services provider Atlas Development and Support Solutions has said it expects a dual listing on the Growth Enterprise Market Segment (‘GEMS’) of the Nairobi bourse by December 15th as it continues with the last stages of discussions with

According to the chief executive officer of the London Company Carl Esprey Atlas will allow Kenyans to take hold of some 40 million shares valued at $4 million with 393 million shares currently listed in London available for take up at the Nairobi Securities Exchange, NSE soon after.

This will be the first cross listed company between Nairobi and London as well as the only listed company involved in the upstream sector.

“By cross listing our companies in Kenya we believe that we can better mitigate political risks as the company will be Kenyan owned, we also believe that this can help us better benefit from local content initiatives,” Esprey told OilNews Kenya.

Once listed this will drive Kenyan shareholding to 18 percent with the investors of recently acquired Ardan Logistics Limited currently holding 8 percent.

Following the dual listing Esprey says the company will continue with its growth strategy that includes  the acquisition of more companies within its field that already have revenue and business in the region.

By this the company can benefit from the reputation of the local businesses while at the same time provide the international expertise that gives it an edge over other players in the market.

Atlas Development and Support Solutions in October completed the acquisition Ardan Logistics Limited in what Esprey termed as a move to combine local presence with high quality, international standard  necessary to transform the company to a market leader.

Atlas development that currently provides a wide range of services including logistics, catering, facilities management, medical services, risk management and training  has also said it would consider  getting in the seismic acquisition business.

Africa Oilfield Logistics Ltd to dual list in the Nairobi Securities Exchange

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African focussed support services and logistics company Africa Oilfield Logistics Ltd has announced its intention to dual list on the Growth Enterprise Market Segment (‘GEMS’) of the Nairobi Securities Exchange by way of an introduction and private placing of up to 10% of the Company’s enlarged share capital, such private placing being offered solely in Kenya.

Completion of the Kenyan Listing will make Africa Oilfield the first AIM listed company to join the Kenyan exchange and marks a further step in the Company’s development as it looks to expand its existing support services business in East Africa.

“Our proposed dual listing on the Nairobi Securities Exchange is a further exciting step forwards and one which will establish the Company as a pioneer in this area. We expect that by taking this opportunity we will further align the Company with the strong regional growth currently ongoing and demonstrate in a tangible way our commitment to operating in both Kenya and the East African region as a whole. We hope that shareholders will share this vision and support the resolutions being proposed at the meeting to be held on 5 November 2014, ” said Chief Executive Officer of Africa Oilfield Carl Esprey.

The company says a Circular has been sent to shareholders giving notice of a general meeting for the purpose of approving resolutions that will enable the Company to undertake the Kenyan Listing.

As set out in the Circular, the Company will be seeking shareholder approval to resolutions to give the directors authority to issue new shares and to disapply pre-emption rights, which when passed will enable the Company to issue new shares and thereby effect the Kenyan Listing.

Following completion of the dual listing, the Company’s ordinary shares will be fully transferrable between the AIM and GEMS markets with any funds raised pursuant to the proposed placing in Kenya being applied towards growth initiatives with the Company’s current financing requirements well covered following the successful £7 million financing completed in August 2014.

“Through our primary investment into Ardan Risk & Support Services, completion of which we expect to occur following the general meeting to be held on 22 October 2014, we have already built a strong presence within the support services and logistics sector, and are currently working for a number of international companies operating in the East African region,” Esprey concluded.